IT Governance Mechanisms and Contingency Factors: Towards an Adaptive IT Governance Model

Abstract

Background and Purpose:In this paper, we aim to propose a guideline for further research towards development of an adaptive strategic IT governance (ITG) model for small and medium-sized enterprises (SMEs). The use of IT has the potential to be the major driver for success, as well it provides an opportunity to achieve competitive advantage and support digital transformation. In order to achieve IT benefits, enterprises need an effective and successful ITG model, which follows and adapts to business needs. Available ITG models are too generic and do not differentiate for enterprises of different industry, size, maturity etc. Methodology: In order to review existing ITG mechanisms, their definitions and identify contingency factors, we performed an extensive literature review (LR). For the initial set of databases, we used the list of journals, which are indexed in the Journal Citation Reports. We also used Web of Science to identify articles with the highest number of citations. Results: This paper provides the most important definitions of ITG and proposes its comprehensive definition. Next to this, we introduce ITG mechanisms, which are crucial for the effective implementation and use of ITG. Lastly, we identify contingency factors that influence ITG implementation and its use. Conclusion: Despite extensive research in ITG area, considerable work is still needed to improve understanding of ITG, its definition and mechanisms. Multiple efforts to develop methods for governing IT failed to achieve any significant adoption rate of ITG mechanisms. To enable ITG to become an integral part of Corporate Governance, further research needs to focus on the development of an adaptive strategic ITG model. In this paper, we propose a next step for more practical method for ITG implementation and its use.

IT Governance as Drivers of Dynamic Capabilities to Gain Corporate Performance Under the Effects of Environmental Dynamism

“…Abraham, Schneider, and vom Brocke (2019) conducted a conceptual study to investigate the data governance programs which focused on data decision domains such as; data quality, data security, data architecture, data lifecycle, metadata, and data storage and infrastructure. Levstek et al (2018) investigated, by extensive literature review, how IT governance mechanisms, standards, frameworks, and best practices become an accepted part of strategic and operational governance processes towards an adaptive IT Governance Model. Silva and Moraes (2011) investigated how IT governance domains [IT principles, architecture, infrastructure, investments and prioritization, and business applications (Weill, 2004;Weill & Ross, 2005)] and IT use drives can contribute to the job description structure and responsibilities organization for better firm performance.…”

Impact of Information Technology (IT) Governance on Business-IT Alignment

“…This study was based on recent articles that reviewed the literature on each construct. In the case of ITG, the definitions and mechanisms or practices of ITG studied by Levstek, Hovelja, and Pucihar (2018) were reviewed. The research gap raised by Caluwe and De Haes (2019) on the uncertainty of ITG consequences was also taken into account.…”

“…As can be seen, the authors have used each of the ITG practices separately. There is consensus that organizations should use ITG mechanisms, but few researchers attempt to describe and provide a complete explanation for ITG mechanisms or practices (Levstek et al 2018). For this reason, this study attempts to assess ITG practices or mechanisms (structures, processes, and relational mechanisms) together to observe their impact on BITA.…”

“…In fact, in their study on the effect of ITG on organizational performance, Ping-Ju Wu et al (2015) stated that ITG is most practiced in large enterprises. Some authors argue that IT adoption is faster in large firms than in SMEs because large firms assume that ITG practices or mechanisms create value for the business, while in SMEs, decision-making is primarily focused on one person (Levstek et al 2018).…”

Improvement of IT Infrastructure Management by Using Configuration Management and Maturity Models: A Systematic Literature Review and a Critical Analysis

“…These conditions have allowed significant advances in IT, granting an evolution in IT services, and the satisfaction of internal and external organizational customer requirements (Johnson et al 2007). The rising number of service providers allowed the increase of their share in the IT market (Levstek et al, 2018). Subsequently, they have naturally become important to the world's economy (Hashmi et al 2010).…”